2-Star Stocks Poised to Plunge: POZEN?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical company POZEN (NAS: POZN) has received a distressing two-star ranking.

With that in mind, let's take a closer look at POZEN's business and see what CAPS investors are saying about the stock right now.

POZENfacts

Headquarters (founded)

Chapel Hill, N.C. (1996)

Market Cap

$200.4 million

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$83.8 million

Management

Co-Founder/Chairman/CEO Dr. John PlachetkaCFO William Hodges

Return on Equity (average, past 3 years)

26.3%

Cash/Debt

$100.8 million / $0

Competitors

AstraZenecaEndo Health SolutionsGlaxoSmithKline

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 14% of the 222 members who have rated POZEN believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

Pozen seems to have a neverending supply of optimistic investors who think that the next drug they get approved will be a commercial success. First Treximet and then Vimovo proved to be predictable failures, and I don't see any reason why PA32540 won't follow the same path. There may still some good times with FDA approval and bullish remarks from sell-side analysts, but ultimately I think we're looking at a retracement of the lows.

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